Market has managed to hold its current level against all odds and many must be feeling the pain of missing the rally. Are you one of them? Do you think this is the right time to jump in? Let's check out charts for any clues...

Market has stayed above MA(100) so far and ONLY time will tell if it can sustain above MA(100) for long. However, take a look at McClellan Index which appears to be turning around as well.

Take a look at below chart from 2011-2012: Once market changed the direction in beginning of 2012 and managed to get above MA(200), it gave back the gains and experienced a pullback. The entire process took 3-6 months. But McClellan index continued to rise throughout this entire period which is the clue that the turn around is for real. We will be looking for such a pullback or divergences in our indicators to provide confirmation.

Weekly chart suggest that market shall experience trend line resistance, however RSI and PPO both have successfully managed to break above down trend line suggesting that this turn around might be for real.

Based on charts, we expect this market experience a similar pullback or sideways action as seen during 2012 market turn around. Hence as we mentioned earlier, patience is required and it would be wise to jump in the market after confirmation.

What does it mean for our Investments for now?

Mutual Funds - If still invested in equities then time to sit tight, as we are on the cusp of turn around. No need to rush to start SIP unless we get positive trend reversal sign. If in cash/ FDs/ liquid funds then it is wise to stay on sidelines until we get confirmation.

Stocks - ONLY invest in strong patterns with good earnings guidance and DO NOT forget to have STOP LIMIT on open positions. When market is in correction, it will drag everything down with it. Check out our trade size calculator to manage your risk along with potential buy candidates watch list.

Try our Service - Take a look at our service called "Quick Charts" which offers an easy visual way to look at daily and weekly charts of chosen stocks side-by-side. We hope it helps you in your research.